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Northampton's Royal and Derngate theatre announced its plans at an event celebrating a decade since its re-opening.
It will respond to concerns in creative industries over the "marginalisation" of the arts in schools.
Chief executive Martin Sutherland said the proposed free school would help young people to find jobs.
Free schools are state-funded schools set up by community groups, universities, academy trusts or business organisations.
"The creative industries are growing in this country at a huge rate but we are not placing as much importance on the art subjects that help people gain employment in these areas," said Mr Sutherland.
But Mr Sutherland said the school will be open to all, and not just to aspiring performers.
"Of course there will be strong emphasis on the performing and other creative arts, but let's just say you're not going to see people dancing on big yellow taxis [reminiscent of a scene from the 1980s TV series Fame] around Northampton any time soon," he said.
"The school is going to be a non-selective secondary comprehensive and students will follow all core subjects but we will also help young people develop skills for the emerging digital economy."
The future Royal and Derngate School will be set up as a free school, a route that has proved controversial in the past, but Mr Sutherland is confident that they can bring something different to the table.
"We understand what good quality arts education looks like.
"Our role is to make sure our values of encouraging creative, ambition, collaboration and inclusion are shared throughout the school and the curriculum."
"Of course we have access to professionals within the industry, but they will enhance the teaching rather than leading it and we will be recruiting a professional team of teachers to lead the school."
The Royal and Derngate, who are currently at the early stages of application, will need to go through a number of processes before the first intake of students can walk through the school gates.
Deborah Annetts from the Bacc for the Future campaign, which calls for creative subjects to be included in one of the school performance measures, the English Baccalaureat or EBacc, understands the motives of The Royal and Derngate's free school plans.
However, she believes setting up specialist schools alone is not going to address the issue of the "continued marginalisation of arts subjects" within secondary education in England.
"We have just had the latest GCSE figures announced and since 2010 there has been a fall in uptake of arts subjects by 21%."
Support for the project is being sought from the New Schools Network, which works with groups who are looking to set up free schools.
Director of the charity, Sarah Pearson said: "Groups like the Royal and Derngate, which are so embedded in their communities, are well positioned to bring teachers, existing schools and other experts together to create schools that really meet the needs of local children.
"Lots of people are concerned about the arts in schools and I'm very excited about their initial ideas to drive access to the arts for all."
The next step for the Royal and Derngate School project will involve them holding a number of public consultations to help shape its plans.
A theatre is applying to be the first in England to open a free school, with the aim of specialising in the arts.

The charges come after the pair were involved in a confrontation near the end of the Terriers' 2-1 win on Sunday.
In addition, both clubs have been charged with failing to ensure their players 'conducted themselves in an orderly fashion'.
The clubs have until 18:00 GMT on Friday to respond to the charges.
Monk accused Wagner of lacking "class, humility and respect" after the pair were sent off, having clashed in the aftermath of Huddersfield's winning goal.
The Huddersfield boss sprinted down the touchline to join his players in celebrating Michael Hefele's 89th-minute goal and the pair tussled when the German was returning to his technical area.
Meanwhile, Huddersfield have indefinitely banned a supporter who unfurled a Turkish flag during the game.
Two Leeds fans, Christopher Loftus and Kevin Speight, were murdered before a match against Galatasaray in Istanbul in April 2000.
Huddersfield said in a statement: "Huddersfield Town can confirm that a 59-year-old man was ejected from the Revell Ward Stand at Sunday's game against Leeds United. The individual has been banned from the John Smith's Stadium indefinitely.
"Huddersfield Town takes incidents of this nature very seriously and will not tolerate this shameful behaviour under any circumstances. This individual is not representative of the club or its supporters."
Huddersfield boss David Wagner and Leeds counterpart Garry Monk have been charged with improper conduct by the Football Association.

Bassett Green Primary School in Honeysuckle Road is due to reopen after the Christmas holidays on 6 January.
In a letter to parents, headteacher Deb Sutton said the decision to close 380-pupil school was "not taken lightly" and that it was a "disappointing end to the Christmas festivities".
"We have had a very infectious sickness bug in school for the last two days," she said.
"Unfortunately, levels of sickness are now so high, that we need to close the school."
She said there will be a "deep clean of all affected areas" to "ensure that the building is safe" before pupils return.

A sickness bug has closed a primary school in Southampton.

